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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Fear Economy - By PAUL KRUGMAN
The Fear Economy
By PAUL KRUGMAN
Published: December 26, 2013
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When the economy is strong, workers are empowered. They can leave if theyre unhappy with the way theyre being treated and know that they can quickly find a new job if they are let go. When the economy is weak, however, workers have a very weak hand, and employers are in a position to work them harder, pay them less, or both.
Is there any evidence that this is happening? And how. The economic recovery has, as I said, been weak and inadequate, but all the burden of that weakness is being borne by workers. Corporate profits plunged during the financial crisis, but quickly bounced back, and they continued to soar. Indeed, at this point, after-tax profits are more than 60 percent higher than they were in 2007, before the recession began. We dont know how much of this profit surge can be explained by the fear factor the ability to squeeze workers who know that they have no place to go. But it must be at least part of the explanation. In fact, its possible (although by no means certain) that corporate interests are actually doing better in a somewhat depressed economy than they would if we had full employment.
Whats more, I dont think its too much of a stretch to suggest that this reality helps explain why our political system has turned its backs on the unemployed. No, I dont believe that theres a secret cabal of C.E.O.s plotting to keep the economy weak. But I do think that a major reason why reducing unemployment isnt a political priority is that the economy may be lousy for workers, but corporate America is doing just fine.
And once you understand this, you also understand why its so important to change those priorities.
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Too many Americans currently live in a climate of economic fear. There are many steps that we can take to end that state of affairs, but the most important is to put jobs back on the agenda.
The Rest:
http://www.nytimes.com/2013/12/27/opinion/krugman-the-fear-economy.html?smid=tw-NytimesKrugman&seid=auto&_r=1&
LisaLynne
(14,554 posts)the vast majority of politicians see no reason to change anything. It's like anything outside of the corporations doesn't really exist.
fasttense
(17,301 posts)Democracy has disappeared in America and in its place the plutocracy of uber rich old white men took over.
They want a very few handful of uber rich white men in charge, a very small middle class to do their taxes, take care of their sick and haggle over minor legal issues, and a huge mass of starving working poor to do everything else their fat lazy asses can't do.
mountain grammy
(26,620 posts)hootinholler
(26,449 posts)Or Sec of Treasury
Or at this point I'd even let him be Atty General.